Confidential Broker Opinion of Value
409 S Boyle Avenue
Los Angeles, California 90033
32Units
15,862Square Feet
1924Year Built
0.41 AcAcres

Glen Scher
Glen Scher
SMDI
Filip Niculete
Filip Niculete
SMDI

February 2026

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LA Apartment Advisors at Marcus & Millichap
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501Closed TransactionsAll-Time
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At LAAA Team, we are dedicated to delivering expert multifamily brokerage services in Los Angeles, helping investors navigate the market with precision, strategy, and results-driven execution. With over 500 closed transactions and $1.6B in total sales volume, our team thrives on providing data-driven insights, strategic deal structuring, and hands-on client service to maximize value for our clients.

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Our mission is simple: To be the most trusted and results-oriented multifamily advisors in Los Angeles, leveraging deep market knowledge, innovative technology, and a proactive deal-making strategy to drive long-term success for our clients.

Our Team
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Glen Scher
Glen Scher
Senior Managing Director Investments
Senior Managing Director at Marcus & Millichap and co-founder of the LAAA Team. Over 450 transactions and $1.4B in closed sales across LA and the Ventura & Santa Barbara counties, consistently closing 40+ deals per year. Glen joined M&M in 2014 after graduating from UC Santa Barbara with a degree in Economics. Before real estate, he was a Division I golfer at UCSB, earning three individual titles and UCSB Male Athlete of the Year.
Filip Niculete
Filip Niculete
Senior Managing Director Investments
Senior Managing Director at Marcus & Millichap and co-founder of the LAAA Team. A 15-year veteran with over $650 million in personal sales volume and more than 220 closed transactions. Born in Romania and raised in the San Fernando Valley, Filip studied Finance at San Diego State University and joined M&M in 2011. He has built a reputation for execution, integrity, and relentless work ethic across Los Angeles multifamily.
Aida Memary
Aida Memary
Senior Associate
Logan Ward
Logan Ward
Associate
Morgan Wetmore
Morgan Wetmore
Associate
Luka Leader
Luka Leader
Associate
Jason Mandel
Jason Mandel
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Alexandro Tapia
Alexandro Tapia
Associate Investments
Blake Lewitt
Blake Lewitt
Associate Investments
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Mike Palade
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Tony H. Dang
Business Operations Manager
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Chairman's Club - Marcus & Millichap's top-tier annual honor (Glen: 2021; Filip: 2018, 2021)
National Achievement Award - Glen: 5 years; Filip: 8 consecutive years
Sales Recognition Award - Glen: 10 consecutive years; Filip: 12 years total
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Our Marketing Approach & Results
How We Market Your Listing
30,000+Emails SentPer Listing
10,000+Online ViewsPer Listing
3.7Average OffersPer Listing
18Days to EscrowPer Listing Average

"We are PROACTIVE marketers, not reactive. We don't list online and wait for calls. We pick up the phone, call every probable buyer, and explain why your property is a good investment for them."

Direct Phone Outreach

  • 30+ probable buyers called directly per listing
  • 1,500 cold calls per week across our team of 8 agents
  • Focus on 1031 exchange buyers, recent purchasers, and nearby property owners

Email Campaigns

  • 30,000+ verified investor and broker email addresses
  • ~8,000 unique opens per "Just Listed" email blast
  • ~800 clicks per campaign downloading the full marketing package

Online Platforms

  • 9 listing platforms with highest-tier exposure on each
  • 10,000+ views per listing across all platforms combined
  • Custom profile on MLS, CoStar, LoopNet, Crexi, Brevitas, Redfin, M&M, LAAA.com, ApartmentBuildings.com

Additional Channels

  • "Just Listed" postcards mailed to nearby property owners
  • Social media across Facebook, LinkedIn, Instagram, and X
  • Current inventory attachment sent ~25 times/day by all team members

Pricing Accuracy

  • 97.6% average sale-price-to-list-price ratio
  • 1 in 5 listings sell at or above the asking price
  • Our pricing methodology is data-driven and comp-backed

Marketing Speed

  • 18 days average to open escrow after hitting the market
  • 17.5% of our listings sell in the first week
  • 3.7 signed offers per listing on average

Contract Strength

  • 10-day average contingency period
  • We almost never allow a loan or appraisal contingency
  • Less than 60 days average escrow timeframe
  • 10% open escrow with zero contingencies

Exchange Expertise

  • 61% of our sellers complete a 1031 exchange
  • 29% of listings sell to a 1031 exchange buyer
  • 76% of transactions involve at least one exchange
Advertised On MLSCoStarLoopNetCrexiBrevitasRedfinMarcus & MillichapLAAA.comApartmentBuildings.com
Investment Overview
Boyle Heights - 409 S Boyle Ave, Los Angeles 90033
32Total Units
15,862Building SF
0.41 AcLot Size
1924Year Built

The LAAA Team is proud to present 409 S Boyle Avenue, a 32-unit rent-stabilized multifamily property situated in the heart of Boyle Heights, one of Los Angeles' most transit-connected eastside neighborhoods. Originally constructed in 1924 as a two-story wood-frame building, the property comprises 30 studios and 2 one-bedroom units across approximately 15,862 square feet of rentable area. As an RSO asset with vacancy decontrol under Costa-Hawkins, the building offers a buyer predictable in-place cash flow with the ability to reset rents to market upon unit turnover.

What distinguishes this asset from comparable offerings is the depth of capital investment already completed by the current ownership. Over the past several years, ownership has executed more than $400,000 in building system upgrades - including a full 400-amp electrical service with 32 individual 60-amp subpanels (finaled September 2025), a 151-window dual-pane changeout to NFRC-certified units, and a solar hot water system - materially reducing deferred maintenance risk for a new buyer. Additionally, the property holds a Plan Check-approved attached ADU entitlement (approved December 2024) with a second detached ADU application pending.

From a market perspective, Boyle Heights continues to benefit from its immediate proximity to Downtown Los Angeles - just 1.5 miles from the Arts District across the LA River. The property sits a seven-minute walk from the Metro E Line at Mariachi Plaza Station, carries a Walk Score of 84, and is anchored by LAC+USC Medical Center with over 9,600 employees within 1.4 miles. The submarket has recorded rent growth exceeding 3% year-over-year, supported by a 4.9% vacancy rate and limited new multifamily supply.

409 S Boyle Ave

Investment Highlights

  • Institutional-Quality CapEx Completed - Full 400-amp electrical upgrade finaled in 2025, 151 dual-pane NFRC windows, and solar hot water system substantially reduce near-term capital requirements for a new buyer
  • ADU Entitlements in Hand - Attached ADU Plan Check-approved (December 2024) with detached ADU application pending, delivering permitted density upside without entitlement risk or delay
  • Individually Metered Electric - Separately metered electric confirmed, with tenants paying their own usage - a cost structure advantage uncommon in pre-war RSO product
  • DTLA-Adjacent Transit Corridor - 0.3-mile walk to Metro E Line (Mariachi Plaza Station), Walk Score of 84, and direct freeway access via I-5, I-10, and I-101
  • Strong Submarket Fundamentals - Boyle Heights rent growth of 3.13% YoY, 4.9% vacancy, and 76.7% renter population with limited new construction pipeline
  • RSO Vacancy Decontrol Across 32 Units - Costa-Hawkins allows rent-to-market resets upon turnover, providing incremental revenue growth across a diversified unit count
Location Overview
Boyle Heights - 90033

Boyle Heights is one of Los Angeles' oldest and most culturally rooted neighborhoods, situated directly east of Downtown across the LA River. The area has maintained a distinct residential identity defined by its walkable streetscape, dense housing stock, and strong community institutions - while benefiting from the economic gravity of a rapidly expanding DTLA just 1.5 miles to the west. The Arts District, now one of LA's highest-rent submarkets, sits across the river and continues to drive spillover demand into adjacent eastside neighborhoods where rents remain meaningfully lower.

The property's transit access is a defining attribute. Mariachi Plaza Station on the Metro E Line is a seven-minute walk - approximately 0.3 miles - providing a direct one-seat ride to Santa Monica, Long Beach, and connections throughout the Metro system. The Walk Score of 84 ("Very Walkable") and Transit Score of 69 ("Good Transit") reflect the neighborhood's dense service network. LAC+USC Medical Center - one of the nation's largest public hospital campuses with over 9,600 healthcare workers - sits 1.4 miles from the property, serving as a primary employment anchor.

Boyle Heights' rental market fundamentals support the investment thesis. The submarket has recorded year-over-year rent growth of 3.13%, driven by limited new multifamily supply and sustained demand from a population that is 76.7% renter. The housing vacancy rate sits at 4.9%, well below the threshold that would indicate softening conditions. New construction in the area remains constrained by regulatory overlays and community resistance, which limits the competitive supply pipeline and insulates existing assets from rent compression.

Location Details
Walk Score84 ("Very Walkable")
Transit Score69 ("Good Transit")
Nearest MetroMariachi Plaza Station (E Line), 0.3 mi
Nearest FreewayI-5, I-10, I-101 (all within 1 mi)
Major EmployersLAC+USC Medical Center (1.4 mi, 9,600+ workers)
GroceryFood 4 Less, local markets within 1 mi
ParksHollenbeck Park (0.3 mi)
Median HH Income$56,623
Renter Percentage76.7%
Population81,701
Property Location - 409 S Boyle Ave
Property Details
409 S Boyle Ave, Los Angeles, CA 90033
Property Overview
Address409 S Boyle Ave, Los Angeles, CA 90033
APN5174-002-014
Year Built1924
Units32 (30 Studios, 2 One-Bedrooms)
Building SF15,862
Avg Unit SF~496
Stories / Buildings2 Stories / 1 Building
ConstructionWood Frame
Site & Zoning
Lot Size17,832 SF (0.41 Acres)
Zoning[Q]R4-1-RIO-CUGU
TOC Tier3
Community PlanBoyle Heights
Council DistrictCD 14 - Ysabel Jurado
Parking12 Surface Spaces (0.38/unit)
Flood / FireOutside Flood Zone, Not in VHFHSZ
Building Systems & Capital Improvements
Electrical400-amp, 32 x 60-amp subpanelsFinaled 9/2025 - NEW
Windows151 dual-pane NFRC-certifiedPermitted 5/2021
SolarSolar hot water systemFinaled 6/2018
HVACIndividual 15K BTU direct ventReplacements 2001-2020
RoofFlat, Class A/B torch-down2009 (17 years old)
PlumbingOriginal - condition unknownWater heater replaced 2017
Water HeatersSolar hot water system
MeteringElectric: individual; Gas/Water: masterConfirmed
Regulatory & Compliance
Rent ControlLA RSO (pre-1978, vacancy decontrol applies)
Soft-Story RetrofitNOT Required (confirmed LADBS)
ADU EntitlementsAttached ADU - PC Approved 12/2024; Detached - Pending
Code Enforcement2 Cases on File (nature unknown)
Certificate of Occupancy0 on file (typical for pre-war)
Transaction History
Ownership & Sale Record
DateGrantor / GranteeSale Price$/Unit$/SFNotes
05/2012Orion Ventures LLC to SRD Commercial Group LLC$1,915,500$59,859$121Current owner
07/2007East Valley Capital Partners to Orion Ventures LLC~$2,135,000$66,719$135Part of multi-property deal ($4.15M combined)
2001Goldstein to East Valley Capital PartnersUnknown---
1997Cal Bay Mtg Group to Goldstein$385,000$12,031$24-

The current owner, SRD Commercial Group LLC (Danny Bahng), acquired 409 S Boyle Avenue in May 2012 for $1,915,500 - a basis of $121 per square foot and $59,859 per unit - during the post-Great Financial Crisis recovery period when multifamily pricing in secondary LA submarkets remained well below peak levels. The prior owner, Orion Ventures LLC, had purchased the property in July 2007 as part of a multi-property transaction valued at $4.15 million, near the peak of the pre-recession cycle.

Since acquiring the property, Danny has executed a disciplined capital improvement program totaling more than $400,000 in building system upgrades - including a full 400-amp electrical service (finaled 2025), 151 dual-pane NFRC-certified windows, a solar hot water system (finaled 2018), and multiple HVAC unit replacements. Ownership has also secured ADU entitlements, with an attached ADU receiving Plan Check approval in December 2024 and a detached ADU application pending. At the suggested list price of $3,200,000, the property reflects approximately 67% appreciation over 14 years of ownership.

Buyer Profile & Anticipated Objections
Target Investors & Data-Backed Responses
Target Buyer Profile
  • 1031 Exchange Investor - The 32-unit count provides meaningful scale for a tax-deferred exchange, and the RSO designation with completed capital expenditures offers stable, predictable cash flow with limited near-term capital needs. Separately metered electric and recent systems upgrades minimize operating risk for a passive holder.
  • Local Value-Add Operator - Interior renovation opportunity exists across the studio units, where long-tenured tenants occupy units at below-market rents. Vacancy decontrol under Costa-Hawkins allows rent reset to market ($1,500-$1,650/mo) upon turnover, creating 30-60% per-unit upside without structural work. The ADU entitlements provide additional income potential without entitlement risk.
  • Long-Term Developer / Land Banker - R4 zoning with TOC Tier 3 designation in a Transit Priority Area creates significant future density upside. The 50% density bonus potential, combined with a Walk Score of 84 and location 0.3 miles from the Metro E Line, positions the site for redevelopment when market conditions warrant.

The property's combination of stable current income, renovation upside, and development optionality positions it to attract interest across multiple buyer segments, supporting competitive pricing and a manageable marketing period.

Anticipated Buyer Objections

"At $100,000/unit, isn't this expensive for Boyle Heights studios?"

The most comparable closed sale - 223 N Breed St (32 studios, 1927) - traded at $87,344/unit in January 2026, but that property had 7 vacant units, needed full renovation, and lacked ADU entitlements. The subject's completed $400K+ in capital improvements, 94% occupancy, separately metered electric, and plan-check-approved ADU justify a 15% premium. The median non-distressed RSO comp is $121,742/unit. At $100,000/unit, the subject is priced below the non-distressed median.

"The 1924 building likely needs a full repipe - that's $150,000-$200,000."

This is a legitimate risk that should be scoped during due diligence. However, the current owner has invested over $400,000 in other building systems - electrical, windows, solar, HVAC - demonstrating a pattern of capital reinvestment. The expected sale range of $2.9M-$3.1M provides a buyer with room to absorb a repipe scenario and still acquire at a discount to the non-distressed comp median.

"The cap rate at $3.2M is only 7.59% - that's reasonable but tight."

The 7.59% is a buyer-normalized cap rate that accounts for reassessed property taxes at the new purchase price, professional management, an on-site manager per California law, and capital reserves. The 7.59% falls within the non-distressed comp range of 2.39% to 7.13%, with a median of 5.69%. The pro forma cap rate of 10.43% reflects significant rent upside achievable through natural turnover.

"Unit 116 at $250/month - is that a permanent affordable restriction?"

This requires verification with the owner. If the unit is occupied by a building employee or reflects a data entry error, the below-market rent resolves naturally at turnover. The pricing strategy accounts for the rent roll as reported, including this unit - it is not a hidden liability.

409 S Boyle Ave - Aerial
Comparable Sales Analysis
7 Closed Sales in Boyle Heights / East LA - Past 18 Months

Interactive map available at the live URL.

#AddressUnitsSale DatePrice$/Unit$/SFCapGRMYr BuiltNotes
S409 S Boyle Ave32Proposed$3,200,000$100,000$2027.59%6.101924Subject Property
1223 N Breed St3201/13/2026$2,795,000$87,344$2327.13%8.93192732 studios/efficiencies; 7 vacant; value-add; orig $3,195K
2323 N Soto St4009/30/2024$2,500,000$62,500$24112.34%4.861929Court sale; distressed; 13 vacant
32221 Michigan Ave3209/30/2024$2,500,000$78,125$27111.45%5.071926Court sale; distressed; same portfolio as #2
4301 S Boyle Ave2705/29/2024$3,025,000$112,037$2185.47%8.451908Same street; debt assumption ($1.47M JPM)
5456 S Breed St2404/02/2024$3,600,000$150,000$1912.39%n/a19721972; elevator; 27 parking; 1BD/2BD mix
6571 Fairview Ave3803/13/2024$4,995,000$131,447$4165.90%n/a196437 singles + 1 1BD; pool; mid-century
72649 Marengo St2406/04/2025$5,145,000$214,375$1776.01%9.711989NOT RSO (1989); mixed BD; 46 parking
Non-Distressed Avg$120,207$2645.22%8.69
Non-Distressed Median$121,742$2255.69%8.69

Individual Comp Analysis

223 N Breed St (32 units, $2.795M, 01/2026) - Most Comparable: Nearly identical to the subject - 32 studios in a 1927 building in Boyle Heights. Traded at $87,344/unit and a 7.13% cap rate after 93 DOM, closing at 87.5% of its original $3.195M list price. The key distinction is condition: Breed had 7 vacant units at sale, rents 62% below market, and requires renovation throughout. The subject has completed over $400,000 in capital improvements (400-amp electrical, 151 windows, solar hot water), maintains 94% occupancy, has separately metered electric, and holds plan-check-approved ADU entitlements. These advantages support a 15% premium over Breed, placing the subject at $100,000+/unit.

323 N Soto St (40 units, $2.5M, 09/2024) - Distressed: Court-ordered portfolio sale with 13 vacant units. Traded at $62,500/unit and 52.6% of list price after 150 DOM. This represents floor and distress pricing - not arm's-length market value. The subject is not distressed and should not be priced against this transaction.

2221 Michigan Ave (32 units, $2.5M, 09/2024) - Distressed: Same court-ordered portfolio as Soto, closing at $78,125/unit and 58.1% of list. Originally listed at $4.3M ($134,375/unit), which is more indicative of the seller's perception of market value before the court-mandated discount. Useful only as a floor reference.

301 S Boyle Ave (27 units, $3.025M, 05/2024) - Geographic Match: Located on the same street just five blocks north. Traded at $112,037/unit - a 1908-vintage building with a 1-bedroom unit mix that commands higher per-unit pricing than studios. The sale included a $1.47M debt assumption from JPMorgan Chase. The subject should trade at a modest discount due to its studio product, partially offset by its newer vintage, larger unit count, and recent capital upgrades.

456 S Breed St (24 units, $3.6M, 04/2024) - Different Product: A 1972-built building with an elevator, 27 parking spaces, and a 1BD/2BD unit mix - fundamentally different from the subject's pre-war studios. Traded at $150,000/unit at a 2.39% cap rate reflecting deeply below-market rents. Serves as a ceiling reference only.

571 Fairview Ave (38 units, $4.995M, 03/2024) - Larger / Mid-Century: A 38-unit, 1964-built building with 37 singles, a pool, and mid-century design appeal. Traded at $131,447/unit and a 5.90% cap rate after 63 DOM. The subject is 40 years older with fewer amenities but has a stronger CapEx profile and ADU development upside. A 15-20% discount from Fairview implies $105,000-$112,000/unit for the subject.

2649 Marengo St (24 units, $5.145M, 06/2025) - Non-RSO Outlier: A 1989-built building not subject to the RSO. Its mixed bedroom count, 46 parking spaces, and $214,375/unit price reflect a different product class entirely. Excluded from primary pricing analysis. Its 98.9% SP/LP ratio is notable as a data point on buyer appetite for Boyle Heights multifamily.

Boyle Heights multifamily is actively trading, with seven closed comps identified in the past 12-18 months and three on-market listings in the immediate submarket. Non-distressed SP/LP ratios of 78-99% suggest 10-15% negotiating room from list price is standard for this product type. The weight of non-distressed evidence supports studio product in Boyle Heights trading at $87,000-$131,000/unit, with the subject's completed CapEx profile, ADU entitlements, and 94% occupancy positioning it in the $96,000-$106,000/unit range.

On-Market Comparables
Active Listings in Boyle Heights & Comparable Submarkets

Interactive map available at the live URL.

#AddressUnitsList Price$/Unit$/SFCapGRMDOMNotes
A2107 E Cesar E Chavez Ave30$3,795,000$126,500$3077.23%8.3535Mixed-use (27 res + 3 commercial)
B124 N Westmoreland Ave30$4,350,000$145,000$1967.29%8.16--All studios; Koreatown; broker says trading 15%+ below list

The most relevant on-market benchmark is 124 N Westmoreland Ave in Koreatown - a 30-unit, all-studio, 1927 RSO building asking $145,000/unit ($4.35M). Broker intel from Taylor Avakian at Lyon Stahl (February 16, 2026) indicates buyer activity is "below list 15%+" with buyers "interested and writing," implying an expected trade around $123,000/unit ($3.7M). Koreatown is a materially stronger submarket than Boyle Heights - higher rents, stronger tenant demand, better retail amenities - so the subject should be discounted 15-20% from Westmoreland's expected trade price. That produces $98,000-$105,000/unit, consistent with the $100,000/unit suggested list price derived from closed comp analysis.

2107 E Cesar Chavez Ave is a mixed-use property with 27 residential units and 3 commercial spaces, making it an imperfect multifamily comparison. However, the residential component - 27 furnished studios in a 1927 building - is relevant. The asking price of $126,500/unit with a 7.23% cap rate on actual income provides useful context for where the market is pricing studio product in the 90033 zip code.

Rent Comparables
Renovated Studio Rents in the Boyle Heights Submarket

Interactive map available at the live URL.

#AddressDist.RentSF$/SFYr BuiltUnitsConditionNotes
1308 S Boyle Ave0.1$1,500400-500$3.33Pre-193020RenovatedGranite counters, hardwood, stainless; 0.2 mi to E Line
2571 Fairview Ave0.6$1,895~350$5.41196438RenovatedPool, laundry, A/C; units $1,495-$1,995
32707 Pomeroy Ave0.9$1,575460$3.42Pre-196020RenovatedHardwood, granite, new windows, balcony
4207 N Savannah St0.7$1,595500$3.19193217RenovatedSeismic retrofit complete
52448 Boulder St0.5$1,495352$4.2519648RenovatedLaminate floors, newer appliances
6444 S Chicago St0.3$1,750-$1,795~600$2.99Pre-1940Small MFRenovatedLarger studio; priced higher due to size
7529 S Lorena St1.1$1,650525$3.14Pre-1960Small MFUpdatedEast BH / Lorena corridor
8234 N Chicago St0.3$1,975~450$4.39Pre-193016+RenovatedHighest comp in core BH
92019 City View Ave0.8$1,475~400$3.69Pre-1950Small MFUpdatedLower end; less renovation
101849 Sichel St1.5$1,695350$4.84Pre-1960Small MFRenovatedLincoln Heights

Pro Forma Rent Recommendation

ScenarioRent/Mo$/SF (est. 450 SF)Basis
Conservative$1,500$3.33Floor set by Comps #1, #5, #9. Basic renovation, standard finishes.
Moderate (Recommended)$1,625$3.61Supported by Comps #3, #4, #6, #7. Standard renovation with granite, LVP/hardwood, updated bath.
Aggressive$1,800$4.00Supported by Comps #2, #8. Higher-end finishes, Arts District/DTLA spillover tenants.

The moderate scenario at $1,625/mo is supported by the weight of comparable evidence. The subject's advantages - Metro proximity at 0.3 miles from the E Line, recent systems upgrades that reduce CapEx risk for a renovating buyer, and 32-unit scale - offset its disadvantages, including the 1924 vintage and unknown plumbing condition. The $1,625 range is achievable with a $15,000-$20,000 per-unit renovation and reflects current asking rents for renovated studios in older Boyle Heights buildings.

Important context: these are asking rents, not achieved rents. Actual lease-up may require one to two months of vacancy loss or modest concessions. RSO vacancy decontrol under Costa-Hawkins allows rent reset to market on turnover, but the turnover rate depends on tenant demographics. With approximately 37% of the building occupied by Brilliant Corners voucher tenants, turnover on those units may be lower than average, extending the timeline to fully stabilize the rent roll at pro forma levels.

Financial Analysis
Investment Underwriting

Unit Mix & Rent Roll

UnitTypeSFCurrent RentRent/SFMarket RentMarket/SF
101Studio496$1,266$2.55$1,625$3.28
102Studio496$1,550$3.12$1,625$3.28
103Studio496$1,500$3.02$1,625$3.28
104Studio496$1,575$3.18$1,625$3.28
105Studio496$1,480$2.98$1,625$3.28
106Studio496$1,600$3.23$1,625$3.28
107Studio496Vacant-$1,625$3.28
108Studio496Vacant-$1,625$3.28
109Studio496$1,550$3.12$1,625$3.28
110Studio496$1,475$2.97$1,625$3.28
111Studio496$1,100$2.22$1,625$3.28
112Studio496$1,425$2.87$1,625$3.28
113Studio496$1,550$3.12$1,625$3.28
114Studio496$1,650$3.33$1,625$3.28
1151BD/1BA500$1,873$3.75$1,875$3.75
1161BD/1BA500$250$0.50$1,875$3.75
201Studio496$1,575$3.18$1,625$3.28
202Studio496$1,550$3.12$1,625$3.28
203Studio496$1,600$3.23$1,625$3.28
204Studio496$1,525$3.07$1,625$3.28
205Studio496$1,575$3.18$1,625$3.28
206Studio496$1,550$3.12$1,625$3.28
207Studio496$1,575$3.18$1,625$3.28
208Studio496$1,525$3.07$1,625$3.28
209Studio496$1,550$3.12$1,625$3.28
210Studio496$1,500$3.02$1,625$3.28
211Studio496$1,450$2.92$1,625$3.28
212Studio496$1,575$3.18$1,625$3.28
213Studio496$1,525$3.07$1,625$3.28
214Studio496$1,650$3.33$1,625$3.28
215Studio496$1,200$2.42$1,625$3.28
216Studio496$926$1.87$1,625$3.28
TOTAL32 Units15,880$43,695$2.75$52,500$3.31

Occupancy: 93.75% (30 occupied, 2 vacant). Unit 116 at $250/month is an anomaly - verify with owner. ~12 Brilliant Corners voucher tenants (~37.5% of building).

Operating Statement

IncomeAnnualPer Unit% EGI
Gross Scheduled Rent $524,339$16,386 -
Less: Vacancy (5%) ($26,217)($819) -
Other Income (RSO/SCEP Passthroughs) [1]$910$28 -
Effective Gross Income$499,032$15,595100.0%
ExpensesAnnualPer Unit% EGI
Real Estate Taxes [2]$38,720$1,2107.8%
Insurance [3]$18,672$5843.7%
Utilities (Water/Sewer/Gas/Trash/Common Electric) [4]$80,528$2,51616.1%
Repairs & Maintenance [5]$28,800$9005.8%
On-site Manager [6]$24,000$7504.8%
Contract Services & Supplies [7]$11,200$3502.2%
Administrative & Legal [8]$8,143$2541.6%
LAHD Registration [9]$6,615$2071.3%
Marketing [10]$2,000$620.4%
Reserves [11]$9,600$3001.9%
Other (Permits, State Tax, Misc) [12]$7,771$2431.6%
Management Fee (4%) [13]$19,961$6244.0%
Total Expenses$256,010$8,00051.3%
Net Operating Income$243,022$7,59448.7%

Property taxes reassessed at 1.21% of $3,200,000 purchase price. The pricing matrix recalculates taxes at each price point.

Notes to Operating Statement

[1] Other Income: RSO/SCEP passthroughs only ($330 RSO + $580 SCEP from 2024 T-12). No laundry or parking income currently collected.

[2] Real Estate Taxes: Reassessed at 1.21% of $3,200,000 purchase price. Seller currently pays $30,725 on a Prop 13 basis.

[3] Insurance: Seller actual of $18,672 ($583/unit). Within benchmark range for pre-war RSO product.

[4] Utilities: Seller actual verified across 2023 and 2024 operating data. Master-metered gas and water; individually metered electric (tenants pay their own). Includes common area electric.

[5] Repairs & Maintenance: $900/unit based on Tier 4 benchmark. Recent $400K+ in capital expenditures (electrical 2025, windows 2021, solar 2018) substantially reduce near-term repair burden.

[6] On-site Manager: Required per CA Civil Code Section 17995.1 for 16+ units. Free unit + stipend.

[7] Contract Services: Tier 4 benchmark at $350/unit. Includes cleaning supplies, maintenance materials, and landscaping.

[8] Administrative & Legal: Seller actuals for administrative ($4,748) and legal ($3,395). Within benchmark ranges.

[9] LAHD Registration: RSO registration + SCEP fees. Partially passable to tenants under allowable passthroughs.

[10] Marketing: $63/unit turnover advertising budget.

[11] Reserves: $300/unit. Reduced from standard $450 benchmark to reflect recent major capital expenditures (400-amp electrical 2025, 151 windows 2021, solar hot water 2018).

[12] Other: Permits ($2,023) + California franchise/entity tax ($2,923) + miscellaneous ($2,825).

[13] Management Fee: 4.0% of EGI for professional third-party management.

Summary
OPERATING DATA
Price$3,200,000
Down Payment (45%)$1,440,000
Number of Units32
Price Per Unit$100,000
Price Per SqFt$201.74
Gross SqFt15,862
Lot Size0.41 Acres
Approx. Year Built1924
RETURNSCurrentPro Forma
CAP Rate7.59%10.43%
GRM6.105.13
Cash-on-Cash7.61%13.92%
Debt Coverage Ratio1.822.50
FINANCING
Loan Amount$1,760,000
Loan TypeNew
Interest Rate6.50%
Amortization30 Years
Loan Constant0.0758
UNIT SUMMARY#Avg SFSched.Market
Studio30496$1,485$1,625
1 Bed / 1 Bath2500$1,062$1,875
INCOMECurrentPro Forma
Gross Scheduled Rent$524,339$624,000
Less: Vacancy (5%)($26,217)($31,200)
Effective Rental Income$498,122$592,800
Other Income$910$910
Effective Gross Income$499,032$593,710
CASH FLOWCurrentPro Forma
Net Operating Income$243,022$333,913
Less: Debt Service($133,493)($133,493)
Net Cash Flow$109,529$200,420
Cash-on-Cash Return7.61%13.92%
Principal Reduction (Yr 1)$19,672
Total Return (Yr 1)8.97%15.28%
EXPENSESCurrentPro Forma
Real Estate Taxes$38,720$38,720
Insurance$18,672$18,672
Utilities$80,528$80,528
Repairs & Maintenance$28,800$28,800
On-site Manager$24,000$24,000
Contract Services$11,200$11,200
Administrative & Legal$8,143$8,143
LAHD Registration$6,615$6,615
Marketing$2,000$2,000
Reserves$9,600$9,600
Other$7,771$7,771
Management Fee (4%)$19,961$23,748
Total Expenses$256,010$259,797
Expenses as % of EGI51.3%43.8%
Expenses / Unit$8,000$8,119
Suggested List Price
$3,200,000
$100,000Price Per Unit
$202Price Per SF
7.59%Current Cap Rate
6.10Current GRM

Pricing Matrix

Highlighted row represents the suggested list price. Property taxes recalculated at 1.21% of each purchase price, which adjusts NOI and cap rate at every row.

Purchase PriceCurrent CapPro Forma CapCash-on-Cash$/SF$/UnitPF GRM
$3,500,0006.84%9.44%5.93%$221$109,3755.61x
$3,450,0006.96%9.59%6.19%$218$107,8125.53x
$3,400,0007.08%9.75%6.46%$214$106,2505.45x
$3,350,0007.20%9.91%6.73%$211$104,6885.37x
$3,300,0007.33%10.08%7.01%$208$103,1255.29x
$3,250,0007.46%10.26%7.31%$205$101,5625.21x
$3,200,0007.59%10.43%7.61%$202$100,0005.13x
$3,150,0007.73%10.62%7.92%$199$98,4385.05x
$3,100,0007.88%10.81%8.24%$195$96,8754.97x
$3,050,0008.03%11.01%8.57%$192$95,3124.89x
$3,000,0008.18%11.21%8.91%$189$93,7504.81x
$2,950,0008.34%11.42%9.26%$186$92,1884.73x
$2,900,0008.51%11.64%9.63%$183$90,6254.65x
$2,850,0008.68%11.86%10.01%$180$89,0624.57x
$2,800,0008.85%12.10%10.40%$177$87,5004.49x
A TRADE PRICE IN THE CURRENT INVESTMENT ENVIRONMENT OF
$2,900,000 — $3,100,000

Pricing Rationale

The suggested list price of $3,200,000 ($100,000 per unit) is anchored primarily by comparable sales in the Boyle Heights submarket. The most comparable closed sale - 223 N Breed St, a nearly identical 32-studio building that traded in January 2026 at $87,344 per unit - serves as the pricing floor. The subject commands a 15% premium over Breed due to completed capital improvements ($400,000+ in electrical, windows, solar, and HVAC), superior occupancy (94% vs 78%), entitled ADUs (Planning Commission approved December 2024), and separately metered electric. This premium is further supported by 301 S Boyle Ave at $112,037 per unit (same street, larger units) and the median non-distressed sale price of $121,742 per unit.

The expected sale range of $2,900,000 to $3,100,000 accounts for the 10-15% negotiating discount that is standard in this submarket, where the average sale price-to-list price ratio among non-distressed comps is 87%. The pricing is further contextualized by the on-market benchmark at 124 N Westmoreland Ave in Koreatown - a 30-unit, all-studio, 1927-built RSO building asking $145,000 per unit, with broker intel indicating an expected trade at approximately $123,000 per unit. Applying a 15-20% Boyle Heights location discount yields $98,000 to $105,000 per unit, consistent with the suggested list of $100,000 per unit.

Assumptions & Conditions: Financing terms are estimates and subject to change; contact your Marcus & Millichap Capital Corporation representative. Vacancy modeled at 5.0%. Management fee of 4.0% of EGI reflects third-party professional management. Real estate taxes estimated at 1.21% of sale price reflecting Proposition 13 reassessment at close of escrow. Operating reserves at $300/unit reduced for recent capital expenditures. Pro forma rents at $1,625/month moderate scenario per rent comp survey. All information believed reliable but not guaranteed; buyer to verify independently.